Bitcoin has surged past the significant $96K resistance level, demonstrating a robust bullish momentum that sets the stage for a possible climb to $120K.

In a notable display of strength, Bitcoin [BTC] recently breached the critical $96K mark, aligning perfectly with forecasts from the Long-Term Power Law model. This achievement paves the way for the cryptocurrency to explore new heights, potentially reaching $120K in the near future. As of now, Bitcoin is trading at $98,633.53, reflecting a modest increase of 0.50% in the past 24 hours.

Yet, it is crucial for Bitcoin to maintain its position above the $96K level to avoid triggering any localized sell-offs. The burning question remains: is this breakout the spark for a broader bull run?

Technical Signals Indicating Strong Bullish Momentum

The price action of Bitcoin strongly indicates bullish momentum. With an RSI (Relative Strength Index) reading of 79, there is evident buying enthusiasm, although the asset is inching toward overbought territory. Additionally, Fibonacci retracement levels show Bitcoin comfortably above the vital 0.786 retracement mark at $85K, consolidating its upward trend.

If $96K holds as a robust support, the next significant Fibonacci extension could see Bitcoin touch the $120K mark. However, investors should remain cautious of potential retracements; a drop below this support could jeopardize the current rally and lead to possible corrections.

Surge in Buying Pressure Propels Bitcoin Forward

In recent trading sessions, buying pressure for Bitcoin has escalated across various major exchanges, with the Taker Buy/Sell Ratio reaching 1.03. This indicates a consistent trend in which buyers are outpacing sellers, boosting prices beyond the critical $96K threshold.

Platforms such as Binance, OKX, and Bybit are witnessing heightened activity, reflecting increasing demand from both institutional and retail investors. This growing interest continues to underpin Bitcoin's bullish momentum, rendering the $120K target increasingly realistic.

Declining Supply on Exchanges Signals Investor Confidence

Compounding this bullish outlook, Bitcoin exchange reserves have dipped by 0.29% in the last 24 hours, now standing at 2.509M BTC. This decline indicates an uptick in withdrawals to cold wallets, a move typically observed when long-term investors show confidence and desire to reduce immediate selling pressure.

As exchange reserves continue to diminish, the tightening supply could enhance upward price movements, providing further fuel for Bitcoin's potential surge.

Growing Network Activity Supports Bullish Sentiment

Market analytics reveal that active addresses on the Bitcoin network have increased by 1% to 10.703K over the last day. Transaction counts have also risen by 0.79% to 540K, demonstrating a marked rise in activity and utility within the network. This combination of vibrant buying interest and sustained network activity strengthens the argument for a bullish sentiment surrounding Bitcoin.

Will Bitcoin Maintain Its Momentum?

Bitcoin's breakthrough above the $96K resistance level marks a critical inflection point, bolstered by strong technical indicators and on-chain metrics. The ongoing bullish momentum appears sustainable, with $120K emerging as the next pivotal target for investors and traders alike.

As long as Bitcoin remains above the noteworthy $96K threshold, the rally is poised to continue, potentially maintaining the broader bull run as speculated by market analysts. The crypto community is certainly watching closely to see if this momentum is the beginning of something even larger. Are we ready for a $120,000 Bitcoin? Only time will tell!